The pound has soared to the highest level versus the euro since 2017 after both the government and the opposition gave signs of changing strategy on Brexit.
Sterling gained for a third day against the common currency after the Labour party came out in favour of a second Brexit vote and Prime Minister Theresa May was expected to bring up the topic of extending the Brexit deadline beyond March 29 at a meeting of her cabinet on Tuesday.
Politics.co.uk Editor Ian Dunt said “it’s almost as if whatever we do to soften or reverse Brexit is good for people’s livelihoods” as Britain’s currency shot up.
It rallied 0.8 per cent to 86.05 pence per euro, the strongest since May 2017.
It also gained 0.8 per cent to $1.3200, touching the highest since January against the dollar.
The currency was further boosted as Bank of England Governor Mark Carney and fellow policy makers testified in front of a parliamentary committee. Their comments on inflation suggested the central bank sees price growth staying above target regardless of the Brexit outcome, giving sterling another lift, according to Mizuho Bank Ltd’s head of hedge fund currency sales Neil Jones.
The pound rallies to the highest in 4 weeks as the U.K. government and the opposition give signs of changing strategy on Brexit https://t.co/3tajl5ynvn pic.twitter.com/Qtarj3F9mU
— Bloomberg Brexit (@Brexit) February 26, 2019